During the Budget 2018, Finance Minister inserted a new Section 80TTB. This allows a tax deduction of up to Rs.50,000 with respect to interest income from FDs held by senior citizens. Let see the features of this section.
Showing posts with label New Income Tax Section 80TTB. Show all posts
Showing posts with label New Income Tax Section 80TTB. Show all posts
Sunday, 27 January 2019
Thursday, 13 September 2018
As
per the latest Finance Budget 2018-19, it appears that the Tax Slab as
same as the previous Financial Year, but one most profitable section has
introduced by this Finance Budget, " Standard Deduction Rs.40,000/-.
The
Salaried persons can reduce their tax burden for the financial year
2018-19. More one good news for Sr.Citizen that the exempt U/s 80TTB up
to Rs. 10,000/- which is also newly introduced by this Finance Budget
Friday, 10 August 2018
During the Budget 2018, Finance
Minister inserted a new Section 80TTB. This allows a tax deduction of up to
Rs.50,000 with respect to interest income from FDs held by senior citizens. Let
see the features of this section.
FDs or fixed instruments are the major backbones of
many of the senior citizens. However, the majority of these fixed instruments
are not so tax efficient. Hence, to give some relief to senior citizens Finance
Ministry introduced this new Section 80TTB.
This amendment is effective from Financial Year
2018-19 or Assessment Year 2019-20.
Who is eligible to claim the deduction under Section 80TTB?
Senior Citizen who is holding the FDs with Banks,
Co-operative Banks and also in Post Offices and earning the interest income
from such deposits are eligible to avail the deduction under Section 80TTB.
Here, the meaning of senior citizen is an
individual resident in India
Firms, an association of persons or a body of
individuals are not allowed to claim the deduction under Section 80TTB.
Also, if a senior citizen claimed the deduction under
Section 80TTA (all individuals can claim up to Rs.10,000 deduction against the
interest income received from a savings account), then they are not allowed to
claim the deduction under Section 80TTB.
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